Themes

• General mood is “risk off”
• Fed members making hawkish comments Friday night
• Reports of a car bomb in the Ukraine keeps market on edge

What’s Moving

U.S. markets opened to the news of a bombing in Donetsk (Ukraine), which had traders scrambling to put safe haven trades back on. The upside then petered off amid a lack of fresh news and markets continued to meander sideways for the rest of the U.S. session. 

Three separate Fed members (Brainard, Williams and Evans) all hit the takes with slightly hawkish comments, while Fed’s Williams noted that the Fed didn’t need to take a “big step” with the first move. Presumably, this means a hike of 25bps rather than 50bps.

Thoughts

Over the weekend, Fox News ran a report that Putin has told his troops to begin to plan how they intend to attack the Ukraine. This news, a lack of local trading incentives and a sideways session on Friday should keep a lid on markets until we hear confirmation of an attack.

Data today sees little more than Japanese Flash Manufacturing PMI (E: 55.0).

Pivot Points